Azul signs nonbinding deal to buy Avianca Brazil assets

Brazil’s Azul has signed a deal to purchase key assets of financially troubled Avianca Brazil, including 30 Airbus A320-family aircraft, for up to $105 million.

Azul has also agreed to take over Avianca Brazil’s air operator’s certificate and 70 pairs of airport slots.

“The offer is nonbinding and remains subject to a number of conditions precedent, including due diligence, regulatory and creditors’ approvals, and the conclusion of Avianca Brazil’s judicial reorganisation,” says Azul, estimating that the process could take up to three months.

Avianca Brazil filed for bankruptcy protection in December 2018, as it faced threats of aircraft repossession by lessors.

Azul says the purchased assets will be transferred to a new entity free of all debt and liabilities…